Jute traders, exporters and both the public and private jute mills will get loan facility at a maximum rate of 9% from the scheduled banks under a Bangladesh Bank refinancing scheme of Tk200 crore, which has been introduced for promoting the jute sector.
Bangladesh Bank yesterday signed a partnership agreement with 16 banks interested to get the fund and disburse in the jute sector.
The signing ceremony, which was presided over by the central bank deputy governor SK Sur Chowdhury, attended among others, by Executive Director SM Moniruzzaman and other managing directors of the 16 banks.
The 16 banks are Sonali, Agrani, Janata, Rupali, BASIC, UCBL, IFIC, NBL, Prime, AB Bank, Mercantile, Uttara, Standard, One, City and Bank Asia.
The central bank formed a 5 year-term renewable revolving refinancing fund after the approval of its board of directors to facilitate the jute trading.
The banks will get the fund from the central bank with 5% interest rate, according to the guideline of scheme.
Of the total fund, 40% has been set for public jute mills, 40% for private jute mills, and rest of 20% has been set for the exporters and jute traders.
The central bank has formed the fund with an aim at ensuring fair price of the farmers, so they are encouraged to produce more raw jutes, said SK Sur Chowdhury. He, however, warned the banks that the loan must be secured and recoverable.
SM Moniruzzaman said: “Loan recovery of this fund will be a major challenge as there is no government guarantee and the full liability lies between the banks and the clients.”
Urging the banks not to misuse of lower interest rate, he asked them to properly implementation the main objective of the funds.
“We will provide the loan facilities to the jute traders and jute mills although the main objective of the scheme is to ensure fair price to the farmers,” said National Bank Managing Director AKM Shafiqur Rahman.
He also urged the central bank to enhance the limit of refinancing scheme as the existing allocation of Tk200 crore is very small support this sector.
